Correlation Between Hurco Companies and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both Hurco Companies and Xponential Fitness at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hurco Companies and Xponential Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurco Companies and Xponential Fitness, you can compare the effects of market volatilities on Hurco Companies and Xponential Fitness and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hurco Companies with a short position of Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and Xponential Fitness.
Diversification Opportunities for Hurco Companies and Xponential Fitness
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hurco and Xponential is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness and Hurco Companies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hurco Companies are associated (or correlated) with Xponential Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xponential Fitness has no effect on the direction of Hurco Companies i.e., Hurco Companies and Xponential Fitness go up and down completely randomly.
Pair Corralation between Hurco Companies and Xponential Fitness
Given the investment horizon of 90 days Hurco Companies is expected to under-perform the Xponential Fitness. But the stock apears to be less risky and, when comparing its historical volatility, Hurco Companies is 2.15 times less risky than Xponential Fitness. The stock trades about -0.01 of its potential returns per unit of risk. The Xponential Fitness is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,539 in Xponential Fitness on November 19, 2024 and sell it today you would lose (806.00) from holding Xponential Fitness or give up 31.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Hurco Companies vs. Xponential Fitness
Performance |
| Timeline |
| Hurco Companies |
| Xponential Fitness |
Hurco Companies and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurco Companies and Xponential Fitness
The main advantage of trading using opposite Hurco Companies and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurco Companies position performs unexpectedly, Xponential Fitness can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Xponential Fitness will offset losses from the drop in Xponential Fitness' long position.| Hurco Companies vs. Enerpac Tool Group | Hurco Companies vs. Enpro Industries | Hurco Companies vs. Omega Flex | Hurco Companies vs. Gorman Rupp |
| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp | Xponential Fitness vs. OneSpaWorld Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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